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We remind you that since January 1, 2017, the amendments to the Article 39 of the Tax Code of Ukraine, which describes the transfer pricing, came into effect. They provided for the expansion of the list of non-residents, with whom the transactions will be controlled. So, according to the pp. "d" cl. 39.2.1.1 TCU the operations are recognized as controlling if they are performed with non-residents who do not pay income tax, including income earned outside the state of their registration, and / or are not tax residents of the country in which they are registered as legal entities. In order to administer this norm, the Cabinet of Ministers of Ukraine approved the list of organizational and legal forms of such non-residents in the context of jurisdictions with the Decree dated 04.07.2017 No.480. Most of the list is partnerships, among which are popular partnerships in Germany, the Netherlands, Switzerland, the United Kingdom and the United States. The main criterion for assigning a business transaction with a non-resident counterparty to the controlled ones is the nonpayment of the corporate tax by the last one in the state of registration. Therefore, if this tax is paid by him in...

The press service of the National Bank of Ukraine reported on the termination of issuing the references to the business entities for the declaration of currency values ​​belonging to a resident of Ukraine and located outside it. This decision was taken as a consequence of the next changes in the conditions of the foreign exchange market, introduced by the order of the Ministry of Finance No. 524 of May 24, 2017, and entered into force on July 21. According to the document, the availability of such a reference is no longer a compulsory requirement for foreign economic activity, including customs clearance of export-import goods and conducting banking operations with currency values. It is worth noting that in the list of documents required for the passage of the customs clearance, fixed in the art. 335 CCU, there is no above reference, that is, its absence could not be the reason for the refusal to register export-import cargo anyway. Consequently, in the modern conditions the procedure for obtaining this certificate was an additional bureaucratic formality, which abolition would substantially facilitate the life of business entities. Therefore, the NBU, with the assistance...

The leading tax lawyer of the Finance Business Service, Rolan Bondarets, gave an interview to the First Business TV Channel on the topic "Fictitious counterparty and tax credit". The conversation was devoted to a topical, but at the same time, debatable and ambiguous matter: if the enterprise has the right to form a tax credit through economic transactions conducted with the counterparties that are subsequently admitted fictitious. The examples from real court practice were considered: Rolan Bondarets cited the conclusions of the highest courts of Ukraine, compared the current positions of the Supreme Court of Ukraine and the ECHR, and also expressed his personal opinion on this issue. At the end of the interview, the expert told the entrepreneurs about the practical recommendations how to independently check domestic and international counterparties for the signs of...

Date: September 7, 2017 Venue: EBA Kyiv Office, 1A Andriyivskiy Uzviz An attempt to automate the system of tax administration and eliminate the human factor was adopted to reduce the corruption component. This led to the consequences that the taxpayers predicted in advance. Regulatory authorities actively denied the possibility of their occurrence. The implementation of an automated blocking of tax invoices led to a large number of unjustified stopped registrations of tax invoices. There were cases of subsequent refusal in their registration. These problems have arisen since the full-fledged launch of the automated blocking of tax invoices. A powerful blow from the launch of tax invoices automated blocking was felt by the most vulnerable sectors of the real economy. These were manufacturing enterprises and enterprises providing services. This problem has also affected the business that is engaged in commercial activities. This was due to the impossibility of accounting for tax overhead balances by the lock program in warehouses and other nuances. The target audience: This topic is relevant for all registered payers of value added tax, and those who intend to register a payer of...

The European commission began process of consultations on reforming of the rules regulating value added (VAT) rates. An autumn 2017, the commission intends to provide official proposal about reform of the VAT Directive. The directive sets common rules that restrict the right of choice for the Member States to establish VAT rates, and is intended to guarantee neutrality, simplicity and technological effectiveness of the VAT system. The system was created more than two decades ago, for the purpose of achievement of the final VAT system based on the "principle of origin" amely - system in which location of the seller determines a tax regime including rates. As a result, state members will be obliged to tax the same goods at very similar rates, and the directive established the minimum levels of the taxation in hope that over time VAT rates will meet. The Commission stated that the implementation of the target system, has opened an opportunity to reform the rules and rates to make them less constraining for the Member States. At a meeting look for feedback about need of actions of the EU in the field of VAT rates and between harmonization, and autonomy of state members in settlement...

Companies are faced with a more thorough check of taxes, as more and more employees are working at the international level, 24 percent of enterprises reported a recent call by tax authorities. According to PwC, minimization of the taxation and removal of profit of OECD aggravated attention on the risks connected with mobility of employees as the international organizations. The governments are aimed at providing profit that is assessed with a tax on the territories where business activities are performed. 31 percent of the companies say that they don't know the exact number of the employees working at the international level. 58 percent of the companies realize consequences of this tax provision and they don't know how to cope with such changes. Most of them understand that it is necessary to make changes before tax rules are put into operation. According to the report, informally migrating population creates special problems and risks for employers. Nearly a quarter (23 percent) of respondents told that they didn't know who bears responsibility for business travelers and only a third of the companies worry about the taxes. Ben Wilkins, the partner of global mobility told that...